Molson Coors considers marijuana legalization a ‘risk factor’

A major beer company now considers legal cannabis as a threat to future business.

Molson Coors Brewing Company labeled the spread of marijuana legalization as a “risk factor” its annual financial report filed with the Securities and Exchange Commission on Wednesday, reports Fortune.

“Although the ultimate impact is currently unknown, the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer,” the filing reads. “As a result, a shift in consumer preferences away from our products or beer or a decline in the consumption of our products could result in a material adverse effect on our business and financial results.”

Cannnabis law reform was one of 40 risks listed by the company, which also includes climate change and loss of personnel.

Colin Wheeler, a Molson Coors spokesman, told the Cannabist that it’s far too early to determine what impact legalization will make on their beer sales.

“As the legal landscape changes in Canada and evolves in the U.S., we are working actively to understand the impacts on our business, if any, and the range of appropriate responses in the interests of our company and our stakeholders,” said Wheeler.

Meanwhile, companies such as Constellation Brands — owners of the beers Corona and Modelo — have decided to invest millions in the legal marijuana industry rather considering it a risk to their business.

Smell The Truth is one of the internet’s most popular destinations for cannabis-related news and culture. This blog is not written or edited by SFGate or the San Francisco Chronicle. The authors are solely responsible for the content.

Smell The Truth

Smell The Truth is one of the internet's most popular destinations for cannabis-related news and culture. This blog is not written or edited by SFGate or the San Francisco Chronicle. The authors are solely responsible for the content.